For Immediate Release
Chicago, IL – June 29, 2017 –Zacks Equity Research Momo (NASDAQ: MOMO – Free Report ) as the Bull of the Day, AutoNation (NYSE:AN) (NYSE: AN – Free Report ) as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Amercia’s Car-Mart (NASDAQ: CRMT – Free Report ) and Lithia Motors (NYSE: LAD – Free Report ).
Here is a synopsis of all four stocks:
When looking for the Bull of the Day I typically try to find a stock that has an interesting combination. Most of the time it’s a Zacks Rank #1 (Strong Buy) stock that’s breaking on through to new highs. That’s fantastic but I really like when I can uncover a gem not too many people are talking about within an area of the market they are very excited about. Today’s stock sits at the middle of a few exciting trends; China, mobile and gaming.
I’m talking about Momo (NASDAQ: MOMO – Free Report ). Momo Inc. operates as a mobile-based social networking platform in the People’s Republic of China. The company’s platform includes its Momo mobile application and various related features, functionalities, tools, and services that are provided to users, customers, and platform partners. It offers Momo mobile application that enables users to establish and expand their social relationships based on locations and interests; and Hani, a live video application.
The reason for the favorable Zacks Rank here is the huge jump in our current year and next year’s Zacks Consensus Estimate. Based on analysts’ earnings estimates, we’ve seen a move from $1.20 to $1.40 on the current year number while next year’s number has jumped from $1.73 to $2.06. Add this to the series of recent earnings surprises to the upside and you see why this is ranked the way it is.
You can see this data on the Detailed Estimates page we have on Zacks.com. On the same page you see some eye-popping growth numbers. Revenue growth for the current year is slated to come in at 126% year-over-year while next year’s growth is expected to be 38%. If you look over to EPS, the current year is calling for 97% EPS growth while next year should come in at 46% growth.
These huge numbers have provided plenty of fuel for a rally in shares of MOMO. So far 2017 has been a banner year, with the stock pushing up from the high teens to $46 before running out of gas. The recent retracement here has seen the stock pull back to $37, dipping below the 50-day moving average. The commodity channel index is oversold right night, indicating the stock could be due for a bounce soon.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
The risk of peak auto is lingering over the automakers right now. Some pent-up demand helped spike auto sales to multi-year highs but now with rates turning the corner and a glut of cars coming back on leases there is pressure on sales. As a result, analysts have becoming increasingly bearish on the industry as a whole.
Today’s Bear of the Day is in this industry under pressure,AutoNation (NYSE: AN – Free Report ). AutoNation, Inc., through its subsidiaries, operates as an automotive retailer in the United States. The company operates in three segments: Domestic, Import, and Premium Luxury. It offers a range of automotive products and services, including new and used vehicles; and parts and services, such as automotive repair and maintenance services, and wholesale parts and collision services. The company also provides automotive finance and insurance products comprising vehicle services and other protection products, and arrangement of finance for vehicle purchases through third-party finance sources. As of December 31, 2016, it owned and operated 371 new vehicle franchises from 260 stores located primarily in metropolitan markets in the Sunbelt region of the United States.
AutoNation is a Zacks Rank #5 (Strong Sell) stock because of the bearish actions of analysts covering the stock. Over the last sixty days, seven analysts have dropped their earnings estimates for the current year while six have dropped their numbers for next year. The bearish attitude has dropped our Zacks Consensus Estimate for the current year from $4.01 to $3.90 while next year’s number has gone down from $4.46 to $4.17.
Shares of AN have come under pressure this year, running out of steam under $53 in late January. From that elevated level the stock came crashing down under $40. The good news is buyers stepped in to prop up the stock in the high $30s. The first bounce off the lows in April took the stock to the 50-day moving average before ultimately running out of steam at $45.35 in late April. Another retest of the lows was met with a bounce that ended at $43.13. With a firm bottom at $38.20 long-term shareholders should keep an eye on this level.
Investors looking for other stocks in the automotive industry are going to be hard-pressed to find ideas with favorable Zacks Ranks. The highest ranked stocks in the industry are Zacks Rank #3 (Hold) stocksAmercia’s Car-Mart (NASDAQ: CRMT – Free Report ) and Lithia Motors (NYSE: LAD – Free Report ).
Today’s Stock from Zacks’ Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +18.8% from 2016 - Q1 2017, our top stock-picking screens have returned +157.0%, +128.0%, +97.8%, +94.7%, and +90.2% respectively.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - Q1 2017, the composite yearly average gain for these strategies has beaten the market more than 11X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation. See Them Free>>
About the Bull and Bear of the Day
Every day, the analysts at Zacks Equity Research select two stocks that are likely to outperform (Bull) or underperform (Bear) the markets over the next 3-6 months.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous analyst coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Strong Stocks that Should Be in the News
Many are little publicized and fly under the Wall Street radar. They're virtually unknown to the general public. Yet today's 220 Zacks Rank #1 "Strong Buys" were generated by the stock-picking system that has nearly tripled the market from 1988 through 2015. Its average gain has been a stellar +26% per year. See these high-potential stocks free >>.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Momo Inc. (MOMO): Free Stock Analysis Report
AutoNation, Inc. (AN): Free Stock Analysis Report
America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report
Lithia Motors, Inc. (LAD): Free Stock Analysis Report
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